Christophe Depreter, CEO SABAM, Belgium Seminar AEPO-ARTIS Panel discussion 3 - Collective management of rights in a globalised environment Role and challenges

Christophe Depreter, CEO SABAM, Belgium

Seminar AEPO-ARTIS

Panel discussion 3 -Collective management of rights in a globalised environment Role and challenges

18 – 19 November 2010


Rules of governance and aims of Collective rights management organisations, including cultural and social aspects


1- Aims

for members / stakeholders: to maximize collections and distributions

for customers to offer an easy and secure access to the

world repertoire


2- Vision and values

Transparency


3- Rules of governance

Internal regulation

Corporate Governance Charter Definition of all decisional bodies within the society, their composition and

responsibilities. Distinction between the strategic bodies (Board of Directors) and operational

bodies (management committee). Ethic rules (including the individual signature of a Code of Conduct).

Code of conduct To avoid conflicts of interests (functional and material interests). To guarantee a professional and objective behavior. To guarantee the secrecy of discussions held within the Board of Directors.


Legal framework(Belgian law of 10th December 2009 on the status and the control of collective management societies)

1- Authorization authorization in order to collect rights on Belgian territory Foreign societies must collect through a branch in Belgium. totally or partially withdrawn in case of infringement of the law

2- Rules Societies must comply with a set of rules imposing transparency

towards its’ members as well as towards users Website, annual reports, distribution sheets and invoices must

contain certain information.

3- Societies must foresee in an internal administrative structure, rules of corporate governance and internal control.

4- Societies need to take the necessary measures in order to avoid conflicts of interests .

5- Societies may deduct maximum 10% of the collected amounts and use these rights for social, cultural and educative aims. The Board of Directors must report how the monies were used to the General Assembly.

6- Societies must appoint a commissioner to whom special tasks are imposed.

7- Societies are controlled by the Minister of Economics to whom they must submit certain information (including proposals to modify tariffs, rules and regulations).

8- Societies must finance said control.


International self regulation

Common declaration GESAC / ICMPRepresentation within the Board of Directors

Categories of on-line rights in the rules and regulations

CISAC Professional Rules & binding Resolutions

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TD08-3501Author:Original language: English


CISAC Professional Rules &Binding Resolutions for Authors’

Societies

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TD08-3501Author:Original language: English


The Professional Rules

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Professional Rules

The rules consist of a set of binding principles intended to promote

The fair and non-discriminatory collective management of

copyright

Cost efficiency and increased productivity

A professional approach to the management of the creator’s

rights

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What do the Professional Rules cover?

Governance & Membership

Establish who can be members of a collective management organisation,

members’ rights, Board of Directors composition and the society’s inherent

compliance with laws and regulations

Transparency & Confidentiality

Deal with the information that authors’ societies are required to share with

their members, sister societies and CISAC (annual report, licensing income,

distribution rules, etc.) and the policy concerning disclosure of confidential

information to third parties

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What do the Professional Rules cover?

Licensing & Collection

Detail the different criteria for authors’ societies related to the granting of

licences, the collection of royalties, and the monitoring of uses of their

repertoires

Documentation & Distribution

State that authors’ societies must carry out all documentation of works in

their repertoire and distribution of royalties in accordance with the Binding

Resolutions

Compliance & Conflicts

Describe the various principles related to compliance with the rules and the

various procedures for dealing with litigation and dispute settlement

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Compliance timetable

The Professional Rules for musical and visual arts societies came into force in June 2008, after being approved by the CISAC Board of Directors and General Assembly. All musical rights and visual arts societies must now be in compliance with their respective Professional Rules.

Compliance for the DLV societies has been agreed in 2009

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Compliance timetable

Detailed information is available on CISAC website:Full text of the rules for each repertoire

FAQ on Professional Rules

Online compliance declaration (available for the end of the year)

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Compliance with Professional Rules

Compliance means that a society operates according to 100% of the principles established in the Rules

All societies must fill out an annual online declaration stating that

their practices adhere to CISAC’s Professional Rules

The Secretariat has been asked by the Board of Directors to carry out

several random checks per year in each region

3 Societies per region – 2009 first PR Review conducted

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Compliance with Professional Rules

What are the consequences of non-compliance?

If a society is not in compliance with the Professional Rules, the

Governance and Compliance Committee will consult with the Board

of Directors who will determine an appropriate course of action

This could include modifications to the society’s membership status

or, in serious cases, expulsion

Nevertheless, CISAC will take all of the necessary measures

including assistance and training to ensure that all societies can

quickly adapt and easily function in compliance with the Rules

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The Binding Resolutions

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What are the Binding Resolutions?

The CISAC Professional Rules establish the general principles necessary to ensure that a Society conducts its operations with integrity, transparency and efficiency and employs practices that are adapted to the market and technological developments

The Binding Resolutions define the principles for Documentation and Distribution, as a technical annex to the CISAC Professional Rules for Musical Societies

They represent a consolidation of existing technical rules established to ensure the smooth functioning of societies

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The principles of Binding Resolutions for musical societies were adopted by CISAC Board of Directors and subsequently endorsed by the General Assembly. The Interim final legal document is available and the final version should be submitted to the next Board meeting and GA for approval

Binding Resolutions for audiovisual societies were approved by the DLV Technical Committee in 2008 and have been approved by the Board of Directors

Final versions of Binding Resolutions for the other repertoires are being elaborated.

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Compliance timetables are:

From 2009 to 2011 for musical societies

From 2009 to 2012 for audiovisual societies

The Binding Resolutions for musical societies are classified into 3 categories:

Documentation

Distribution

Use of the CIS tools and format

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Why Binding Resolutions?

Assure that societies are compliant with the common rules and processes, enforce a “quality” level for societies.

Commitment of societies on documentation and distribution practices to make international distribution more efficient.

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Binding Resolutions Time Table

Official validation of the Binding Resolutions

Official validation of the Binding Resolutions

Developed and Developing Societies

complianceDead line

Developed and Developing Societies

complianceDead line

Least Developed Societies compliance

Dead line

Least Developed Societies compliance

Dead line

From 2010 to 2012 for some of the Audiovisual Binding Resolutions

that are more complex to implement

Documents

Christophe Depreter, CEO SABAM, Belgium Seminar AEPO-ARTIS Panel discussion 3 - Collective management of rights in a globalised environment Role and challenges